Supplement Dated January 1, 1997 to Prospectus
                                Dated May 1, 1996

                         SCHWAB INVESTMENT ADVANTAGE(TM)
                               A Variable Annuity*
                                 Distributed by
                           CHARLES SCHWAB & CO., INC.

                                    Issued by
                          Transamerica Occidental Life
                                Insurance Company


         Charles Schwab & Co., Inc. ("Schwab") and Transamerica  Occidental Life
Insurance  Company  ("Transamerica")  have agreed that,  effective  May 1, 1997,
Transamerica will assume full responsibility for all aspects of the distribution
and administration of the contracts  described in the Prospectus  ("Contracts").
Thus, as of that date,  Schwab will not distribute or provide customer  services
for the Contracts.  Further,  Transamerica will change the name of the Contracts
sometime after May 1.
         Transamerica  is currently  reviewing  future  marketing  plans for the
Contracts,  including a new distributor.  Subsequent revisions to the Prospectus
will provide detailed information of the changes.
         Schwab  will  continue  to  service  the  Contracts  until  May  1  and
Transamerica will assume full responsibility for customer service after May 1.











* Group Certificate Form GNC-37-193
  Individual Contract Form 1-504 11-194